How much will the branch cost?
The manager of Kestrel Mutual likes your plan. Then she asks, "What will it cost? Can we afford it? Will it pay for itself?"
If you cannot answer in pounds, the plan stops here. A clear cost plan is what turns an idea into a yes.
By the end of this lesson
Note
I can build a resource list, add up the cost and say if the project is affordable and viable.
Key words
| Word | What it means | Example |
|---|---|---|
| Materials | things that are used up | cable |
| Physical resource | equipment you use again and again | a switch |
| Personnel | the people who work on the project, paid for their time | an installer |
| Budget | the most money the client can spend | |
| Affordable | the cost is the same as the budget or less | |
| Viable | worth doing, because it earns or saves more than it costs over time | |
| Running cost | what it costs each month to keep the system going | |
| Network | computers and devices joined together so they can share data |
The cells students fill in are left blank in this preview.
Starter
Have a go
Starter
3 questionsYour answers are marked here and are not kept. A college account keeps every student’s marks.
This is practice
Important
The real cost plan uses the exam board's template, prices and rates. These prices are invented. Learn the method here and use the real figures when you are given them.
Three kinds of cost
Every cost in the plan is one of three kinds.
Materials are used up, like cable and sockets. Physical resources are equipment that you keep using, like a switch. Personnel are people, paid for the days they work.
For each line, the cost is the amount times the price for one.
Worked example: the resource list
| Item | Kind | Amount | Price each (pounds) | Cost (pounds) |
|---|---|---|---|---|
| Cable box | Materials | 2 | 90 | 2 x 90 = 180 |
| Wall sockets | Materials | 16 | 4 | 16 x 4 = 64 |
| Patch leads | Materials | 20 | 3 | 20 x 3 = 60 |
| Switch | Physical resource | 1 | 250 | 1 x 250 = 250 |
| Access points | Physical resource | 2 | 120 | 2 x 120 = 240 |
| Patch panel and tool hire | Physical resource | 2 | 55 | 2 x 55 = 110 |
| Installer days (Priya, Marcus) | Personnel | 11 | 160 | 11 x 160 = 1760 |
| Tester days (Joy) | Personnel | 5 | 120 | 5 x 120 = 600 |
The cells students fill in are left blank in this preview.
Check
Have a go
Check
3 questionsYour answers are marked here and are not kept. A college account keeps every student’s marks.